This is how you invest money smartly

You want to do more with your money, because it is now gathering dust in your savings account. You feel that you can buy less and less with the same euro. This is the result of inflation. If you want to protect your money against this by increasing its value, you can invest it.

But how do you invest your money wisely? After all, you don't want to take too much risk.

Read this article to learn how you can invest your money wisely. You will discover the different ways to invest your money and how you can easily make money work for you.

Ways to invest money

There are several ways to invest money. Which way suits you best depends on a number of things:

• How much money you have to invest
• How much risk you want to take
• How much time and energy you want to put into it

There are five ways to invest your money. We will now discuss these.

Method 1: investing yourself

The first way is to invest your money. Then you buy financial products, such as shares in a company. When you invest, you buy shares, for example. Then you own, as it were, a small part of a company. You hold these for a longer period of time in the hope that they will become more valuable. If you then sell them for a higher price than you bought them for, you will achieve a return. That is profit on your money.

Investing yourself can yield high returns, but it also costs a lot of time and energy. If you are interested in financial markets and you don't mind investing a lot of time, this can be a great option to make your money work for you.

Method 2: real estate

‍If you invest your money in real estate, you buy land and buildings, for example a house, with the aim of achieving a return. Not only homes fall under real estate, you can also buy and rent out commercial properties. There are strict rules for this, so you need to know what you are getting into.

Investing in real estate is often a complicated process and often requires a high deposit. But, there are also possibilities that, for example, you can use the excess value of your house as collateral to take on a business property. There are risks involved here, however.

Method 3: crypto

Cryptocurrency: a hit one moment, and then you hear nothing about it. But one thing is certain: you have definitely heard of coins like Bitcoin, Ethereum, Dogecoin. Some people have become rich with it, others have lost everything. But, we cannot deny that investing in cryptocurrency is a popular way to do something with your money. You can easily do this via exchanges such as Kraken or BitVavo. Investing in crypto often comes with high risks.

Method 4: crowdfunding

The idea of Crowdfunding is that people with a good (business) idea can directly raise an investment from private individuals. You can see this as investing in a company, but without the intervention of a third party. You have platforms such as KickStarter, GoFundMe where you can choose from different projects. You can choose in which project you have confidence in order to invest a desired amount in it. In return, you will receive, for example, compensation, such as a percentage of the profit or an early-bird version of the product.

Method 5: asset management

Asset management means having your money managed by someone who specializes in it. Asset managers invest assets with the aim of achieving returns. Previously, this required a high deposit, but nowadays that doesn't have to be the case.

There are two different types of asset management: individual and collective. Individual asset management is customized. Your situation is examined and an investment plan is created based on this. Individual asset management often requires a high deposit (from €100,000).  

Want your money to work effortlessly for the future?

Do you want to build wealth for the future, but would you rather hire an expert who knows exactly what to do?

Vive is an online individual asset manager. We put your money to work with a personalized investment plan tailored to your needs and execute it for you. This way you build wealth while hardly having to do anything. You can read more about what we do here, but you can also easily try the app.

Please note! Investing involves risks.